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H?ng Ph??c Nguy?n Th?
on Oct 11, 2024

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Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products Division.The Governmental Products Division's divisional segment margin is $255,000 and the Export Products Division's divisional segment margin is $59,800.The total amount of common fixed expenses not traceable to the individual divisions is $163,700.What is the company's net operating income?

A) $314,800
B) ($314,800)
C) $151,100
D) $478,500

Divisional Segment Margin

The amount of profit or loss generated by a specific division or segment of a company, often used to assess the segment's financial performance.

Common Fixed Expenses

Expenses that do not change in total amount with changes in the volume of production or sales, such as rent, salaries, and insurance.

Net Operating Income

The total profit of a company after operating expenses are subtracted from total revenue, but before deducting interest and taxes.

  • Comprehend the idea of contribution margin and its influence on net operating income.
  • Identify the effects of recurrent fixed costs on net operating profit.
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Maria Desiree DelenOct 15, 2024
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